Kishor Chandra Gunwant and Others vs Co-operative Credit Society, Lucknow and Others

Alok Singh, J—All the petitioners became members of respondent No. 2 before the creation of the State of Uttarakhand; respondent No. 2 has not been bifurcated after the appointed day, therefore, in my considered opinion, respondent No. 2 shall be treated as multi-State cooperative society. Vide impugned order dated 21.2.2012, the Joint Registrar, Cooperative Societies, Lucknow was pleased to issue direction not to extend loan to about 700 members including the petitioners, who are now within the territory of Uttarakhand although still members of respondent No. 2. Feeling aggrieved from this part of the order, petitioners have approached this Court by way of present writ petition.

Mr. Alok Mahra, learned counsel appearing for respondent No. 2, fairly submits that after the appointed day, respondent No. 2 became multi-State cooperative society and petitioners and other members, who are residing within the territory of Uttarakhand are still members of respondent No. 2 society, and respondent No. 2 society has absolutely no hesitation in issuing loan in favour of the members, who are residing within the territory of Uttarakhand; however, in view of the impugned order, their hands are tight and they are not issuing any loan facilities to its members i.e. the petitioners and others, who are residing within the State of Uttarakhand.

Since, respondent No. 2 has become multi-State cooperative society after the bifurcation of the State of Uttar Pradesh, therefore, order issued by the Joint Registrar, Cooperative Societies, Lucknow directing respondent No. 2 not to extend the loan facilities to its all the members, who are residing within the territory of Uttarakhand, does not sustain in the scrutiny of law.

Consequently, writ petition is allowed. Impugned order dated 21.2.2012, Annexure No. 1 to the writ petition, is hereby quashed. CLMA No. 6673 of 2014 also stands disposed of accordingly.